JDA - Taxable Year and Sec 54/54f clarification
This query is : Resolved
17 February 2026
Sir / Madam . Requesting your valuable reply
X , Y & Z (brother & sisters) are the joint owners of a house via family inheritance. House purchased in Year 1969 . Land measuring 1200 sq.ft.
Z , Relinquished her share (400 sq.ft. UDS) to X & Y for Rs. 25 lakhs via release deed.
X & Y becomes absolute owner and entered into JDA with a developer. ( JDA agreement in
Rs.100 stamp paper and POA registered in Registrar office in Chennai. Is this fine ? )
As per JDA, 3 Flats to be constructed. 2 flats to X & Y and 1 flat to developer.
POA registered in Nov 2022, assigning 400 sq.ft UDS to developer.
In June 2024, X & Y decided to surrender their share of 1 flat to developer for Rs. 1.4 crore.
Subsequently prepared Supplementary agreement to earlier JDA and POA registered in July 2024 assigning 400 sq.ft. UDS to Developer.
Please note: Flat is under construction till July 2024.
In April 2025, X gave his share in one flat to Y via settlement deed out of love & affection.
In May 2025, Builder handed over the flat to Y.
Developer, Makes payment of 1.40 Crores for the surrendered share to X & Y in 3 phases (May 2025, June 2025, Dec 2025. ) . Developer deducted TDS 1% in FY 2025-26
Could you please advise, how the capital gain tax will have to be arrived at for X & Y ?
Taxable Year 2025-26 (AY 2026-27) ? Whether Sec 54/54F can be applied ?
Flat constructed – Built Up area 840 sq.ft. + UDS 400 sf.ft = Total 1240 sq.ft each flat.
For the flat as per JDA, should we calculate stamp duty value for built up area 840 sq.ft or total 1240 sq.ft as consideration ?
X , Y & Z (brother & sisters) are the joint owners of a house via family inheritance. House purchased in Year 1969 . Land measuring 1200 sq.ft.
Z , Relinquished her share (400 sq.ft. UDS) to X & Y for Rs. 25 lakhs via release deed.
X & Y becomes absolute owner and entered into JDA with a developer. ( JDA agreement in
Rs.100 stamp paper and POA registered in Registrar office in Chennai. Is this fine ? )
As per JDA, 3 Flats to be constructed. 2 flats to X & Y and 1 flat to developer.
POA registered in Nov 2022, assigning 400 sq.ft UDS to developer.
In June 2024, X & Y decided to surrender their share of 1 flat to developer for Rs. 1.4 crore.
Subsequently prepared Supplementary agreement to earlier JDA and POA registered in July 2024 assigning 400 sq.ft. UDS to Developer.
Please note: Flat is under construction till July 2024.
In April 2025, X gave his share in one flat to Y via settlement deed out of love & affection.
In May 2025, Builder handed over the flat to Y.
Developer, Makes payment of 1.40 Crores for the surrendered share to X & Y in 3 phases (May 2025, June 2025, Dec 2025. ) . Developer deducted TDS 1% in FY 2025-26
Could you please advise, how the capital gain tax will have to be arrived at for X & Y ?
Taxable Year 2025-26 (AY 2026-27) ? Whether Sec 54/54F can be applied ?
Flat constructed – Built Up area 840 sq.ft. + UDS 400 sf.ft = Total 1240 sq.ft each flat.
For the flat as per JDA, should we calculate stamp duty value for built up area 840 sq.ft or total 1240 sq.ft as consideration ?
18 February 2026
Tax Year: FY 2025-26 (AY 2026-27) for the final settlement and flat handover.
Section: Use Section 54 (House-to-House).
Consideration: Use the SDV of the total 1240 sq.ft. unit plus the 1.40 Crore cash.
X's Position: X may face a higher tax hit because the "Settlement Deed" to Y is a gift and does not qualify as "reinvesting" for Section 54 exemption for X.
Section: Use Section 54 (House-to-House).
Consideration: Use the SDV of the total 1240 sq.ft. unit plus the 1.40 Crore cash.
X's Position: X may face a higher tax hit because the "Settlement Deed" to Y is a gift and does not qualify as "reinvesting" for Section 54 exemption for X.
18 February 2026
Thanks for your reply.
X had trfd his share (flat) to Y . So X to pay tax only for the cash he received ? 70 laks ( 50% of 1.40 crore )
X had trfd his share (flat) to Y . So X to pay tax only for the cash he received ? 70 laks ( 50% of 1.40 crore )
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